Summary & current trading recommendations April 7, 2014 FULL REPORT ATTACHED Newnews Asia: 917 HK: As more time is required to accommodate the timetable of the Grand Court of the Cayman Islands, the HK Securities and Futures Commission has granted an extension to the time limit for dispatching the Scheme Document from 3 April 2014 to 19 May 2014. We extend the expected closing from the end of June to the 12 July Long Stop Date. The NWD Circular to be issued simultaneously with the Scheme Document.
SL SP: The largest minority shareholder, Silchester said in a statement that UI's offer is not "full and fair". Silchester said that the independent financial adviser only evaluated the financial terms of the offer and "No attempt has been made to look at the underlying business and evaluate its commercial opportunities". Europe: CU LBO: The Paris Court of Appeal will decide on the complaints of hedge fund CIAM and shareholder association ADAM on 29 Apr. Regardless of the Court's decision, the current offer has no chance of succeeding as several activist shareholders have acquired significant stakes in CU and it is trading well above the offer price. We see a 50% chance of a new offer with a bump to EUR 19 and a 30% chance of the EUR 23 medium fair value. We recommend buying CU and change the expected closing from the end of June to mid-August.
ZIGGO NA: Joaquin Almunia, the EU's antitrust commissioner, says the deal was notified to EU and that the EU will review it. He also said that he was 'surprised' by Dutch regulator's bid to review the deal
FCAM LN: The OFT provisional deadline is set for 9 May 2014
SCVB SS: A positive development this week as VW signing an agreement with the trade unions of Scania in relation to retaining jobs and the head office. Another development was, AMF, AMF Fonder rejecting the bid. AMF said that VW's offer does not reflect long-term value of Scania. AMF, AMF Fonder held 0.8% of Scania's share capital, 0.3% of voting rights as of Feb. 28.
POH1S FH: Offer closed with acceptance level exceeding 94% of the voting rights.
U.S. / Canada: OSK-G: To thwart G's bid, OSK and YRI entered a partnership on Apr. 2 giving YRI a 50% interest in OSK's assets. It is subject to an affirmative vote of two-thirds of OSK shareholders at the May 20 EGM. We see an 85% chance of the agreement completing. G started conducting due diligence on OSK on Apr. 1 and has extended its hostile offer to Apr. 15, so there is still a 10% chance of a bump.
CSE US: CSE announced that it has received regulatory approval from the Board of Governors of the Federal Reserve System and that the merger will close on Monday, April 7, 2014 at the close of business.
Latam: No news.
DEALS OF THE WEEK
RDA; AMAP; 917 HK; CU FP; ZIGGO NA; SPTT CP; MEO1V FH; TWC; BISA3 BZ; ALLL3 BZ; BICB4 BZ
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